In simple terms, good data is data that is expertly matched to your needs, when you need it, and from a source you can trust. It can be the difference between unlocking your competitive advantage, or slipping behind the curve. Leveraging good data can help you maintain a firm footing, navigate market turbulence and ultimately, increase your bottom line.
Why is provenance so important?
When it comes to buying good data, it’s all about trust.
When we make any purchase, we like to know where it was made and if it suits the job to hand. It’s the same with data. Knowing how data is produced and collated should be top of mind when choosing a supplier. Depending on what you need, there may be regulatory or commercial reasons that determine your sensitivities; whether it’s data from observed trades, or simply indicative prices, for example. Would data from a single source be suitable, or would combined, merged pricing work better? Some suppliers may use data derived from external sources, so you need to know the components are owned by the provider and have been collected, managed and distributed in full compliance with industry standard terms.
There can be no cutting corners.
How do you ensure the data is fit for purpose?
It’s only good data if it’s what you need.
A thorough trial period, or series of data samples, allows users to fully understand the value proposition of the data. But this might not always be practical. The pragmatic alternative is to have a comprehensive understanding of the data source and how it fits the specific user requirements. You need to consider, can the data be used and stored as needed? Does the provider allow redistribution or derived data rights? Check the fields and update rates required and if there are any service levels around update rates, delivery and scope of data.
Be clear on what you need from the start.
What are your best options for data delivery?
You can choose how you want your data delivered.
Depending on your technical infrastructure and data requirements, there are a variety of options available. Finding the right vendor or delivery channel partner can make a significant difference to your onboarding timescale, resource requirements and costs. You also need to consider the ongoing costs and resource commitment.
The right fit helps everything else fall into place.
Where, when and what is the overall use case?
Use cases change.
End users and applications across the organisation will have changing needs. Desks may migrate their requirements, business strategies could be diverted. Purchasing data with a strategy that builds in flexibility is a common challenge. When selecting a supplier, technical delivery and negotiating commercial contracts, you should consider the current and future use cases across your organisation. Usage rights will cover onward use, derived data rights, historical storage and redistribution of raw data, or derived data.
Knowing where the supplier IP rights end, and yours begin, is vital.
What is the right price?
Where are you willing to compromise?
Once you’ve found the data supplier and technical delivery provider that are right for you, the commercial agreements can be negotiated, based on overall strategy and your specific priorities. Finding the right price depends on agreeing the points that can be compromised, without impacting the data user. For example, timeliness of the data, ongoing usage rights or delivery mechanisms are less crucial elements that can be moulded to fit your budget.
One size, and one price, does not fit all.